Overview
- Negotiators concluded two days of London talks with a pact to implement the 90-day tariff truce struck in Geneva last month
- The agreement commits China to lift restrictions on rare earth minerals and magnets in exchange for easing US export controls on semiconductor tools and aerospace components
- Commerce Secretary Howard Lutnick said the framework will be sent to Presidents Trump and Xi for final approval before any duties are rolled back
- Customs data showed China’s exports to the US plunged 34.5% in May, marking the sharpest drop since early 2020 and highlighting pressure on global supply chains
- If leaders do not reach a broader deal by August 10, tariffs will automatically revert to previous levels of up to 145% in the US and 125% in China